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Down and Out ("Down and Out in Paris and London" by George Orwell) are a nice couple with nice manners but they've got no money at all ("Nice People", a famous English song of Flanagan and Allen from the Great Depression). They both receive welfare checks of $500 a month, which they can spend on housing and other goods. Each unit of housing costs $1 in the free market, as does each unit of other goods. Down and Out are eligible to receive a public housing unit, which provides them with an apartment that would cost them $1000 per month in the free market at a rent of $500 per month. Draw their budget set (the combination of housing and other goods that they can afford) in housing-other goods space. (Thus, housing is on the x-axis and other goods are on the y-axis).
Some musical groups have become concerned about the high prices that promoters charge for concerts (say $80 on average). So they have mandated that lower prices be charged that are more fair to their fans (say $60). Use the market model.
An individual has to choose between investment A and investment B. The individual estimates that income and probability of the income from each investment are given in the following table (a) Using Excel's statistical tools, calculate the standard..
Assume a tax of t=$2 is attached to each unit exchanged in market. calculate the new market equilibrium and the deadweight loss from this change.
If the income tax base were broadened by eliminating these deductions, tax rates could be lowered, while raising the same amount of tax revenue. For each of these deductions, what would you expect the likely effect on taxpayer behavior to be
Describe the spot and 12-month forward exchange rates and determine any change in the ROS repatriated in 12 months based on exchange rates versus the current forecast.
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period What would happen to autonomous consumption if real wealth increased and expectations of the future became more optimistic
You are a fixed income fund manager based in euroland. Other than return of the EUR bond market. Demonstrate the benefits of international diversification by investing 70% of your portfolio in EUR bonds, 30% in UK bonds.
Assume Springfield's economy moves into a recession and Y falls to $9 and increasing unemployment allows widget makers to decrease wages to $18 per hour.
Depends on the data above, describe why public health officials generally advocate the use of cigarette taxes to reduce teenage smoking.
Show graphically the amount of the change that is due to the substitution effect and the amount of the change that is due to the income effect.
Include your strategy using the marketing research process to "attract more Marketing Program students to the University of Stevens Point," using self- administered, one-time mail surveys as the research plan. Include what you would do for each st..
what is the major problem in achieving an efficient use of the worlds water if there were a global market in water, like there is in oil, how do u think the market would work would a free world market in water achieve an efficient use.
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